Interest on the rise, do I buy and where?

We have all experienced the increase in prices on everything from food to gas and pretty much everywhere in-between.

With that the question is do you buy as interest rates are starting to creep up and the Federal Reserve is talking about increasing rates to help deal with the rising prices.

The question is do you buy now or wait especially as many investors are looking for the 1% rent to value ratio which has become a challenge to hit depending on the geographical location. There are plenty of areas in and around the greater Atlanta area that can provide that but, it is now time to be more strategic in new purchases. Here are a couple of things to look at:

  • Newer construction preferable a townhome

This makes it easier to deal with any maintenance issues and makes all of the maintenance issues in the neighborhood nearly universally known allowing for you to plan what issues might occur.

  • Higher renter areas haven’t changed much pre/post pandemic

Areas such as Stone Mountain, Decatur, Locust Grove, etc. have not changed much in comparison to their rental versus ownership throughout the pandemic. You can still use these areas to be a good judge for high rental areas that will remain the same in the near future.

  • What do you need to get started?

Homes in and around the Southeast Georgia might provide a great value but, might need some TLC just to get them rental ready. A majority of what we see are paint and carpet needed. This is the standard; however, appliances are the major cause for concern we see in the first year of ownership.

The townhouse strategy allows for you to get into the rental market for 160-190K price point with a rental rate that will hold the 1% value ratio. This is a safer strategy then to purchase more expensive properties and carrying additional debt servicing costs.


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